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DECREE No

DECREE No. 61/2002/ND-CP OF JUNE 11, 2002 ON THE REGIME OF ROYALTIES

THE GOVERNMENT

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the provisions in Chapter I, Part VI of the October 28, 1995 Civil Code on copyright and the Government�s Decree No. 76/CP of November 29, 1996 guiding the implementation of a number of provisions on copyright in the Civil Code;

In order to encourage the creative activities of authors and ensure the property rights of authors and owners to their own works;

At the proposal of the Minister of Culture and Information,

DECREES:

Chapter I

GENERAL PROVISIONS

Article 1.- Regulation scope

This Decree prescribes and guides the implementation of the regime of royalties for authors and owners of works according to Articles 745 and 746 with forms of protected works prescribed in Article 747 of the Civil Code.

Article 2.- Application objects

The regime of royalties for works prescribes money amounts payable to an author or authors (hereinafter called authors) or owners of works when the works are used in order to ensure the interests of authors and encourage authors to create more works of high value; and the remuneration amounts payable to persons who perform jobs related to the works.

Article 3.- Forms of works entitled to enjoy the royalty regime, according to Article 747 of the Civil Code, shall include:

1. Written works;

2. Lectures, speeches;

3. Theatrical works and other forms of artistic performances;

4. Cinematographic and video works;

5. Radio and television works;

6. Press works;

7. Musical works;

8. Architectural works;

9. Plastic art works and applied fine art works;

10. Photographic works;

11. Scientific works, textbooks, teaching materials;

12. Graphics, drawings, sketches and maps related to topography, architecture or scientific projects;

13. Translated, adapted, rewritten, transformed, compiled, annotated, selected and anthological works;

14. Computer software;

15. Other works prescribed by law.

Article 4.- Royalty groups of various forms of works

Royalties are classified into 6 groups based on the work forms, including:

1. Royalties for works used in form of publications;

2. Royalties for theatrical works and other forms of artistic performance;

3. Royalties for cinematographic, video works;

4. Royalties for press works (print press, on-line press);

5. Royalties for radio and television works (radio press, television press);

6. Royalties for plastic art works (fine art), applied fine art and photographic works.

Article 5.- Interpretation of a number of terms and expressions in this Decree

1. Royalty means a money amount paid by a work user to an author or owner of a work when the work is used.

2. Incentive royalty means a money amount additionally paid by the work user to the author with a view to encouraging the author to create works under the themes and special cases prescribed in this Decree.

3. The royalty fund means the money amounts set aside by the work users for the payment of royalties, remuneration and other material interests.

4. Remuneration means a money amount paid by a work user to the persons who perform jobs related to the work, prescribed in this Decree.

5. Material interests are the interests enjoyed by authors besides royalties, including donated books, cards of invitation to work publication, dissemination; domestic or international prizes�.

Article 6.- Subjects enjoying royalties

1. Subjects enjoying royalties are authors or owners of works belonging to one of the royalty groups prescribed in Article 4 of this Decree.

2. For works without heirs, or with heirs who refuse to accept the inheritance right or who are not entitled to the inheritance right, works with unidentified authors or anonymous works prescribed in Articles 764, 765 and 766 of the Civil Code, the royalties shall belong to the State. The Government shall assign the Ministry of Culture and Information to manage and guide the implementation of royalties for works prescribed in this Clause.

3. The authors who are persons belonging to the work-using units (on the payroll or under long-term contracts) and create works prescribed in Article 3 of this Decree outside their assigned tasks shall enjoy 100% of royalties.

4. Besides the subjects prescribed in Clauses 1, 2 and 3 of this Article, persons who participate in performing jobs related to works shall, depending on the extent of their contributions, be paid remuneration by the work-using units through negotiable contracts.

Persons of the works- using units (on payroll or under long-term contracts) who perform the above-mentioned jobs outside their assigned tasks shall enjoy 100% of remuneration.

The remuneration money shall be calculated into the royalty fund.

5. Authors or owners of architectural works or computer software shall enjoy royalties under negotiable contracts on the use of works between the work authors or owners and the work users.

6. For the following works, writings, translations and documents prescribed in Article 748 of the Civil Code, when being used, the users shall pay remuneration to the collectors or the suppliers:

a) Folk literary and art works;

b) Written documents of State agencies, political organizations, socio-political organizations, social organizations, socio-professional organizations, economic organizations and the translations thereof;

c) News or current affairs purely for news-casting purposes.

Article 7.- The principles for royalty payment

1. The royalty payment must ensure the rationality between the interests of the work authors or owners, the interests of the work users and the interests of the work beneficiaries in compatibility with the country�s socio-economic situation.

2. The levels of royalty paid to work authors or owners must be based on the forms and quality of the works and their socio-economic efficiency via contracts on the use of works.

3. Works in forms of creation or research shall be paid with higher royalties than the translated, adapted, rewritten, transformed, compiled, annotated, selected and anthological works. The authors of original works shall enjoy a portion of the total royalties when such works are used as selected, anthological, adapted, rewritten, transformed works, compiled into new works or translated into other languages.

4. The authors of the lyrics of songs or the words of picture stories shall enjoy a portion of the total royalty. The royalty- dividing percentages shall be negotiated by authors with the participation of the work users.

5. Authors of works reserved for children, ethnic minorities; Vietnamese authors directly writing in foreign languages, people of the Kinh ethnic majority directly writing in ethnic minority languages, persons of one ethnic minority directly writing in the language of another ethnic minority; authors of the works created under difficult and dangerous conditions and other special cases shall additionally enjoy incentive royalties.

6. Works created for internal circulation and non-commercial purpose shall be paid with lower royalties than works of corresponding forms for commercial purpose. The royalty levels shall be agreed upon between the work authors or owners and the work users.

7. Works of any royalty group shall be paid with royalties according to that group.

8. For publicized or disseminated works, when being re-used, the authors or owners thereof shall still enjoy royalties as prescribed.

9. For works with co-authors, the royalty-dividing ratio shall be negotiated by the authors with the participation of the work users.

10. The work- using units must make deductions for setting up the royalty funds within the prescribed sources.

The royalty funds shall be used for payment of royalties to authors or work owners whose works are used; payment of remuneration, material interests; and organization of creation-promoting activities.

11. For works of particular feature not yet specified in this Decree, the royalty payment shall be agreed upon between the work users and the work authors or owners through package contracts.

12. Within 60 days as from the date the works are publicized or disseminated, the work users must pay up the royalties to the work authors or owners strictly according to the signed contracts. In case of late payment, the consents of the work authors or owners are required.

13. The use of works and payment of royalties must be effected through written contracts according to the provisions of law.

Chapter II

ROYALTIES FOR WORKS USED IN FORM OF PUBLICATIONS

Article 8.- Subjects enjoying royalties

1. The work authors or owners whose works are used in form of publications.

2. Besides the subjects prescribed in Clause 1 of this Article, the collectors and the suppliers of works, documents prescribed at Points a and b of Clause 6, Article 6 of this Decree, as well as compilers shall, depending on the extent of their contributions, be paid remuneration by the work-using agencies.

The compilers who belong to the work-using agencies (on payroll or under long-term contracts) shall enjoy remuneration according to the provisions in Clause 4, Article 6 of this Decree.

The remuneration shall be calculated into the costs of the publications.

Article 9.- Royalties for works used in form of publications

Royalties for works used in form of publications shall, depending on genres, quality and quantity of the publications, be paid according to percentage (%) within the royalty bracket below:

Group

Genre

Percentage (%)

I

Created books

1

Prose

6 - 15%

2

Musical books

8 - 15%

3

Poem

10 - 15%

4

Theatrical or film scenario

10 - 15%

5

Picture books, photo books

6 - 10%

6

Picture stories

2 - 8%

7

Dictionaries, reference books

10 - 15%

8

Politically, culturally, socially or educationally theoretical studies book

10 - 12%

9

Scientific, technological, technical books, scientific projects

8 - 15%

10

Political, cultural, social, educational, scientific, technological and technical knowledge dissemination books

6 - 10%

11

University, college or intermediate vocational school textbooks, books on methods for teachers and pupils� parents

6 - 12%

12

Lessons books, exercise book, notebooks, teachers� books, target program books, teachers� training college textbooks (according to programs of the Ministry of Education and Training)

30 - 140% of the minimum wage/period

13

General education reference books under textbook programs

2 - 10%

II

Adapted, rewritten, transformed, compiled, annotated, selected or anthological books

2 - 8%

III

Translated books

1

Translation from Vietnamese into foreign language(s)

8 - 12%

2

Translation from foreign language into Vietnamese (excluding picture stories in Group I)

6 - 10%

3

Translation from Vietnamese into ethnic minority language(s) in Vietnam

12 - 15%

4

Translation from one ethnic minority language into another one

15 - 18%

IV

Electronic books, CD-ROM

8 - 10%

V

Maps

5 - 20%

VI

Tapes, discs

Audio tapes and discs

Video tapes and discs

4 - 5%

6 - 8%

Article 10.- Other provisions

1. The correctors of translated works shall enjoy 5- 30% of the royalty for the translated works, depending on the correction extent and quality.

Where correction is made for over 30% of a translated work, the corrector shall be the co-author of that work.

2. For translated, adapted, rewritten, transformed, compiled, annotated, selected or anthological works, the parties using the works must ask for permission of and pay royalties to, the authors of the original works. The royalty levels shall be agreed upon between the work users and the authors or owners of the original works. Particularly for the translation and dissemination of works from Vietnamese into languages of ethnic minorities in Vietnam and vice versa, the permission is not required and royalties must not be paid to the authors or owners of the original works.

3. The authors of the lyrics of songs or the words of picture stories shall enjoys from 20- 50% of the royalties for those works.

4. Authors of works for children or ethnic minority people shall additionally enjoy the incentive royalties being equal to 10- 30% of the royalties for such works.

5. Vietnamese authors who directly write in foreign language(s), people of Kinh ethnic majority who directly write in ethnic minority languages, people of one ethnic minority group who directly write in the language of another ethnic minority group shall additionally enjoy the incentive royalties being equal to 40-60% of the royalties for such works.

6. The royalties for bilingual publications shall be equal to 1/2 of the royalties for the translated books of the same genre, prescribed in the royalty bracket.

7. The royalties for non-commercial publications (for internal circulation or free distribution to the public) shall be equal to 80- 90% of the royalties for commercial works of the same genre.

8. In addition to the royalties, the authors are entitled to receive 3 copies of the publication. Where a publication belongs to many authors, the reception of publications shall be agreed upon between the work authors or owners and the work users.

Article 11.- Mode of royalty calculation for payment

1. The royalty shall be calculated for payment with the percentage (%) prescribed in the royalty bracket multiplied by the retail price of the publications and by the quantity of the printed publications.

Royalty = Percentage (%) x Retail price of publication x Printed quantity

In which:

a) The percentage (%) is the percentage in the royalty bracket, agreed upon between the work authors or owners and the users, expressed in the contracts for the use of the works.

b) The retail price of the publication means the pecuniary price printed at the bottom of the fourth cover of the publication or the retail price inscribed in the publication-selling invoice at the time of royalty payment to the authors or the owners of the works.

In cases where later the retail price changes, if there is no other agreement inscribed in the work-using contracts, the retail price for royalty calculation shall be the same as the previous one.

For works published on goods orders or for donation, of which the retail price is lower than the ordinary price, the retail price for royalty calculation shall be the average price of the commercial corresponding publications of the same genre.

c) The quantity of printed copies means the quantity inscribed in the work-using contracts.

The royalty for reprinted publications calculated in percentages prescribed in the royalty bracket shall be added with 0.5- 2% and calculated on the new retail price.

2. Particularly for the publications prescribed under No.12 of Group I in the royalty bracket, the royalty shall be calculated for payment with percentages (%) in the royalty bracket multiplied by the minimum wage level prescribed by the State for public employees in the administrative and non-business sector (hereinafter called the minimum wage level) and by the number of lessons or study periods.

Royalty = Percentage (%) x minimum wage level x number of lessons or study periods.

For publications of this type, the royalty for reprinted publications shall be equal to 10-25% of the royalty for the first-time publication.

Article 12.- Royalty funds

The agencies using works in form of publications shall make deductions for setting up royalty funds from their total publication turnover based on the percentages in the bracket of royalties for publications.

Chapter III

ROYALTIES FOR THEATRICAL WORKS AND OTHER FORMS OF ARTISTIC PERFORMANCE

Article 13.- Subjects entitled to enjoy royalties

1. The authors or owners whose works are used in theatrical form and other forms of artistic performance.

2. Directors, playwrights, choreographers, musicians and painters.

3. Authors being personnel of the work-using units (on the payroll or under long-term contracts) shall enjoy royalties under the provisions in Clause 3, Article 6 of this Decree.

4. Apart from the subjects prescribed in Clauses 1, 2 and 3 of this Article, theatrical actors and actresses and those of other forms of artistic performance, music directors, lighting designers, art assistants, aestheticians, program directors (for programs on variety artistic performance) shall be paid remuneration by the work users, depending on their respective contributions.

Those who perform the above jobs and belong to the work-using units (on payroll or under long-term contracts) shall enjoy remuneration as provided for in Clause 4, Article 6 of this Decree.

The remuneration money shall be calculated into the costs or total expenses for program staging.

Article 14.- Royalties for theatrical works and other forms of artistic performance

Royalties for theatrical works and other forms of artistic performance shall be agreed upon between the work users and the authors or owners of the works and paid by either of the two modes: according to the royalty bracket or percentages of turnover of the performance.

Article 15.- Royalties paid according to the royalty bracket

Royalties for theatrical works and other forms of artistic performance based on the work genre and quality shall be calculated according to grades in the tables prescribed below:

1. Royalties for works of the genres of classical drama, traditional operetta, reformed drama, play, versified play, folk opera, modern opera, puppetry.

a) Directors, playwrights:

Calculation unit: The minimum wage level

Ordinal number

Genre and scale of works

Directors

Playwrights

Grade I

Grade II

Grade III

Grade IV

Grade I

Grade II

Grade III

Grade IV

1

Short play of 20�-45�

13.80

27.61

41.90

55.23

19.00

41.90

62.85

83.80

2

Medium play of 46�-105�

27.61

41.90

55.23

68.57

41.90

62.85

83.80

104.76

3

Long play of 105�-150�

41.90

55.23

68.57

81.00

62.85

83.80

104.76

123.80

b) The choreographers shall enjoy royalties equal to 25% of the directors� royalty.

c) Musicians, painters shall enjoy royalties equal to 60% of the directors� royalty.

2. Royalties for choreographic works

a) Choreographers:

Calculation unit: The minimum wage level

Ordinal number

Genre and scale of works

Scale of authors� royalties

Grade I

Grade II

Grade III

Grade IV

1

Collective dancing without circumstances or stories for 4�-8�

10.47

11.90

13.33

15.23

2

Solo, duo, trio dance for 4�-8�

12.38

13.80

15.70

17.60

3

Dance with circumstances, stories, little versified dance of 9�-15�

17.10

19.00

21.42

23.80

4

Dance for partita dancing

a/ Short partita dancing of 20�-45�

b/ Medium partita dancing of 46�-90�

c/ Long partita dancing of 91� or longer

30.60

50.14

70.62

35.10

55.90

75.47

40.95

60.66

80.23

45.60

65.42

81.00

5

Dance for versified dancing

a/ Short versified dancing of 20�-45�

b/ Medium versified dancing of 46�-90�

c/ Long versified dancing of 91� or longer

45.80

85.50

110.80

50.90

90.60

115.00

55.00

95.50

125.20

60.20

100.90

131.50

6

Dance for ballet drama:

a/ Short ballets of 20�-45�

b/ Medium ballets of 46�-90�

c/ Long ballets of 91� or longer

55.40

100.00

130.50

60.40

110.00

140.00

66.00

115.60

155.60

75.60

120.10

165.10

7

Dances created for circus, puppet shows, plays, operas, films, partita,� calculated according to each dancing minute

1.00

1.20

1.30

1.47

b) Music composers (including instrumentalists) for choreographic works shall enjoy a level equal to the royalty of choreographers of the works of the same genre, scale and grade.

c) Playwrights shall enjoy royalties as follows:

- Playwright for circumstantial dancing, little versified dancing, partita dancing (except for genre of folk partita) shall enjoy royalties equal to 20% of the choreographer�s royalty for works of the same genre, scale and grade.

- Playwrights (including literary scenario, segmental scenario�) for genres of versified dancing, ballets shall enjoy royalties equal to 30% of the choreographer�s royalty for works of the same genre, scale and grade.

d) Painters for choreographic works shall enjoy royalties as follows:

- Painters for big works (including marquette, landscape, rostrum, costumes, properties�), depending on art volume and quality, shall enjoy royalties according to 4 levels being equal to 15%, 20%, 25% and 30% of the choreographer�s royalty for works of the same genre, scale and grade.

- Painters for small items shall enjoy royalties according to the quantity of decorative scene patterns and costume patterns. Depending on the quality and complexity, each decorate scene pattern shall have 4 coefficients of 1.4, 2.0, 2.4 and 2.9 as compared to the minimum wage level; each costume pattern shall have 4 coefficients of 0.7, 0.9, 1.0 and 1.2 as compared to the minimum wage level.

e) Choreographers for song dancing shall enjoy royalties being equal to 50- 70% of the choreographer�s royalties of genres 1 and 2, depending on dance quality and use extent.

3. Royalties for musical works:

a) Composers:

Calculation unit: The minimum wage level

Ordinal number

Genre and scale of musical work

Grade I

Grade II

Grade III

Grade IV

1

Song

9.50

11.90

14.28

19.00

2

Ballads, romance

11.90

14.28

19.00

23.80

3

Medley

14.28

19.00

23.80

28.57

4

One-chapter orchestra

19.00

21.40

23.80

28.57

5

Multi-chapter orchestra

47.60

71.40

95.20

119.0

6

Wind-instrument mini-item of 3-plus double stanzas

11.90

19.00

28.57

38.10

7

Sonata and the like

38.10

42.85

47.60

57.10

8

Symphonic poem and the like

57.10

66.66

76.20

85.70

9

- Symphony

- Concerto of 3 or more chapters

- Ballet for symphony orchestra

119.0

133.30

147.60

166.66

10

Scenario music - scenario singing

- Of small scale (15� or more)

- Of medium scale (25� or more)

- Of large scale (45� or more)

47.60

66.66

80.95

52.38

71.40

85.70

57.10

76.20

90.47

61.90

80.95

95.20

11

Vocal drama

- Of small scale (25� or more)

- Of large scale (45� or more)

71.40

95.20

80.95

104.76

90.47

114.28

100.00

128.57

12

Opera

147.60

166.60

188.30

260.60

b) For a music piece with lyrics, the music composer shall enjoy 70% while the lyrics writer-30% of the royalty payable to musicans.

c) Composers of instrumentation accompaniment for songs with general musical setting shall enjoy royalty equal to 25% of the royalty payable to composers of songs of the same genre and grade.

d) Composers who transform a music piece for other orchestra shall enjoy royalty equal to 30% of the royalty payable to composer of a music piece of the same genre and grade.

e) Painters for musical works of the genres of scenario music, scenario singing, opera shall enjoy royalties as follows:

- Painters for big works (including maquette, landscape, rostrum, costume, properties�) shall, depending on the art volume and quality, enjoy royalties equal to 15%, 20%, 25% and 30% of the royalties payable to composers of musical pieces of the same genre and grade.

- Painters for small items shall enjoy royalties according to the quantity of decorative scene patterns and costume patterns as provided for choreographic works.

f) For genres of scenario singing, opera, the playwrights of scenario singing shall enjoy royalties equal to 5%, 7% and 10%; playwrights of opera shall enjoy royalties equal to 10%, 15%, 20% of the royalty payable to composers of musical pieces of the same genre and grade.

Article 16.- Royalties paid according to turnover of a show

Royalties for works used in form of artistic performance shall be calculated in percentages (%) of turnover of a show:

1. For classical drama, traditional operetta, reformed drama, play, versified drama, folk opera, modern opera, puppetry, the work-using parties shall deduct 15- 21% of the show�s turnover to pay royalties to the authors according to the following regulations:

a) The directors shall enjoy 5- 7% of the turnover.

b) The playwrights shall enjoy 6-8% of the turnover.

c) The musicians shall enjoy 2.5- 3% of the turnover.

d) The painters shall enjoy 2.5- 3% of the turnover.

e) The choreographers, authors of puppet shows, puppetry technicians, creators of new puppets shall enjoy royalties according to percentages agreed upon in the contracts.

f) From the 51st show of a classical drama, a traditional operetta, a reformed drama, a play, a folk opera on, the author shall additionally enjoy the incentive royalty equal to 2% of the turnover of the show.

2. For choreographic works, the work users shall deduct 15-21% of the show�s turnover to pay royalties to the choreographer, the dance director, the playwright, the musician and the painter according to percentages agreed upon in the contracts.

3. For musical works, the work users shall deduct 15-21% of the show�s turnover to pay royalties to the playwright, the musician, the instrumentation musician, transformation musician and painter according to the agreement in the contract.

From the 21st show of an opera on, the author shall additionally enjoy the incentive royalty equal to 2% of the show�s turnover.

4. For circus: The work users shall deduct a portion in percentage (%) of the show�s turnover to pay royalties to the authors according to the royalty bracket below:

Calculation unit: % of the show�s turnover

Ordinal number

Genre

Playwright

Director

Choreographer

Musician

Painter

Total (%)

1

Items in comic form

0.05-0.15

0.1-0.2

0.05-0.13

0.1-0.18

0.05-0.13

0.35-0.79

2

Items with circumstance

0.1-0.2

0.15-0.25

0.05-0.13

0.1-0.18

0.05-0.19

0.45-0.95

3

Comedy

0.1-0.2

0.15-0.25

0.05-0.13

0.1-0.18

0.05-0.13

0.45-0.89

4

Pantomime

0.1-0.2

0.15-0.25

0.05-0.13

0.1-0.18

0.05-0.13

0.45-0.89

5

New high-tech creation

Creation of 1-2 comedies

Creation of 3-5 comedies

Creation of 6 comedies or more

0.1-0.2

0.1-0.3

0.4-0.9

1-2

0.15-0.25

0.1-0.3

0.4-0.9

1-2

0.05-0.13

0.3-0.6

0.2-0.6

0.8-1.8

2-4

Article 17.- Other provisions

1. For works transformed, adapted or rewritten from literary works in prose or poem into theatrical scenarios or from scenario of one theatrical form into another one, the authors shall enjoy royalties equal to the royalties for theatrical scenarios of the same genre, of whom the authors of the transformed works shall enjoy 50-70% while the authors of the original works enjoy the rest.

2. For works of traditional art genres (classical drama, traditional operetta, reformed drama, puppetry); symphony, opera, choreographic drama; works for children or ethnic minority people, the authors shall additionally enjoy incentive royalties equal to 10-20% of the royalties for those works.

The incentive royalty percentages among authors shall be calculated according to the prescribed methods.

The incentive royalty money shall be calculated into the costs of a show program or a play.

3. The authors of the translated theatrical scenarios which are put to use shall enjoy royalties equal to 50-70% of the royalties for scripts of the works of the same genre, scale and grade.

Particularly for the translation of the lyrics of musical pieces (including lyrics in opera), the royalty shall be calculated according to royalty for creation of the lyrics of the musical pieces as prescribed at Point b, Clause 3, Article 15 of this Decree.

4. For theatrical works and other forms of artistic performance, which are published in publications: audio tapes and discs; video tapes and discs, the royalties shall be calculated according to the followings:

a) The regulations for works used in form of publications in Chapter II of this Decree.

b) The royalty percentages among authors, calculated according to genres and grades prescribed in Article 15 of this Decree.

Article 18.- The royalty funds

The parties using theatrical works and other forms of artistic performance shall make deductions for setting up royalty funds from the total expenditures on program elaboration, based on coefficients in the royalty bracket or the show�s total turnovers according to the prescribed percentages.

Chapter IV

ROYALTIES FOR CINEMATOGRAPHIC, VIDEO WORKS

Article 19.- Subjects entitled to enjoy royalties

1. The authors or owners, whose works are used in cinematographic or video form (referred collectively to as cinematographic).

2. The directors, playwrights, cameramen, film producers, musicians, painters.

3. The authors who belong to the work-using units (on payroll or under long-term contracts) shall enjoy royalties as provided for in Clause 3, Article 6 of this Decree.

4. In addition to the subjects prescribed in Clauses 1, 2 and 3 of this Article, film actors and actresses, sound directors, high-technique cameramen, action painters (for cartoons) shall, depending on their contributions, be paid remuneration by work users.

Those who perform the above-mentioned jobs and belong to the work-using units (on the payroll or under long-term contracts) shall enjoy remuneration as provided for in Clause 4, Article 6 of this Decree.

The remuneration money shall be calculated into the total costs of compilation of works.

Article 20.- Royalties for cinematographic works

The royalties for cinematographic works (feature films, documentary films, science films, reportage films, cartoons), regardless of video recording materials and based on their quality and genres, shall be calculated in percentages (%) of the approved total production costs (for films produced on the order or with financial support of the State) or the selling prices of the cimematographic works.

1. Feature films

The royalties shall be calculated and paid according to three grades as follows:

Calculation unit: Works' production cost

Ordinal number

Titles

Grade I

Grade II

Grade III

1

Director

2.25%

2.50%

2.75%

2

Scriptwriter

2.25%

2.50%

2.75%

3

Cameraman

1.20%

1.35%

1.50%

4

Film producer

0.37%

0.43%

0.50%

5

Musician

0.70%

0.80%

0.90%

6

Painter

0.80%

0.90%

1.00%

2. Documentary, science films

The royalties shall be calculated and paid according to three grades as follows:

Calculation unit: Works' production cost

Ordinal number

Titles

Grade I

Grade II

Grade III

1

Director

4.21 %

4.72%

5.30%

2

Scriptwriter

4.21 %

4.72%

5.30%

3

Cameraman

2.15%

2.50%

2.80%

4

Film producer

0.43%

0.51%

0.60%

5

Musician

0.86%

1.05%

1.20%

6

Painter

1.00%

1.20%

1.35%

3. Reportage

The royalties shall be calculated and paid according to two grades as follows:

Calculation unit: Works' production cost

Ordinal number

Titles

Grade I

Grade II

1

Director

2.7%

3.2%

2

Scriptwriter

2.7%

3.2%

3

Cameraman

2.2%

2.5%

4

Film producer

0.3%

0.4%

5

Musician

0.6%

0.7%

4. Cartoon

The royalties shall be calculated and paid according to three grades as follows:

Calculation unit: Works' production cost

Ordinal number

Titles

Grade I

Grade II

Grade III

1

Director

3.65%

4.30%

4.95%

2

Scriptwriter

3.65%

4.30%

4.95%

3

Cameraman

1.80%

2.15%

2.50%

4

Film producer

0.33%

0.43%

0.53%

5

Musician

1.30%

1.55%

1.80%

6

Principal painter

2.70%

3.20%

3.70%

Article 21.- Other provisions

1. For works transformed from literary, theatrical� works into cinematographic scripts, the authors of the original works shall enjoy royalties equal to 30-40% of the royalties payable to scriptwriters of works of the same genre, grade; the authors of the transformed works shall enjoy the remaining percentages of the royalties payable to scriptwriters.

2. For works reserved for children or ethnic minority people, the authors shall additionally enjoy an incentive royalty equal to 5% of the average royalty of a cinematographic work in the year, which is approved by the competent body.

3. From the 11th copy of the motion-picture on, the authors shall additionally enjoy an incentive royalty equal to 8% of the total film sale turnover.

4. The incentive royalty percentages among authors shall comply with the prescribed modes.

5. For cinematographic works with high production costs due to special equipment and materials requirements, the highest royalty level shall not double the royalty for cinematographic works with approved average total production cost.

Article 22.- Royalty funds

Agencies using cinematographic works shall make deductions for setting up the royalty funds according to percentages (%) of the highest grade in the royalty bracket prescribed in Article 20 of this Decree plus 30% of those percentages, multiplied by the selling prices or the approved annual average total production cost of the cinematographic works.

For cinematographic works with financial assistance, the total costs shall include also the managerial expenses.

Chapter V

ROYALTIES FOR PRESS WORKS (PRINT PRESS, ON-LINE PRESS)

Article 23.- Subjects entitled to enjoy royalties

1. Authors or owners whose works are used by press agencies.

2. The authors who belong to the press agencies using the works (on the payroll or under long-term contracts) shall enjoy royalties as provided for in Clause 3, Article 6 of this Decree.

3. In addition to the subjects prescribed in Clauses 1 and 2 of this Article, the collectors and suppliers of works, documents and/or materials prescribed in Clause 6, Article 6 of this Decree, and editors shall be paid remuneration by the press agencies, depending on the extent of their contributions.

Editors who belong to the press agencies (on payroll or under long-term contracts) shall enjoy royalties as provided for in Clause 4, Article 6 of this Decree.

The remuneration money shall be calculated into the costs or total press expenditure.

Article 24.- Royalties for press works

The royalties for press works (print press, on-line press) shall, depending on their genres and quality, be calculated according to the coefficients in the royalty bracket below:

Group

Genre

Coefficient

1

New report

Replies to readers

1-10

2

Pictures

1-10

3

Photos

1-10

4

Political commentary

10-30

5

Reportage

Memoir

Interview

10-30

6

Literary works

8-30

7

Studies

10-30

1. Depending on the works� genres and quality, the editors-in-chief shall decide on the royalty coefficients of the works.

2. For works not prescribed in the royalty bracket and news reports prescribed at Point c, Clause 6, Article 6 of this Decree, the editors-in-chief shall base themselves on the nature and characteristics of the works to decide on the royalty coefficients for authors and corresponding remuneration for collectors, suppliers.

3. The value of a royalty coefficient unit is equal to 10% of the minimum wage level. For press agencies which can balance by themselves the funding and earn profits from the press activities and support economic activities, the editors-in-chief, basing themselves on the quality and genre according to the royalty bracket, can pay royalties to the authors higher than the common average royalty, which, however, must not exceed the levels permitted by the royalty funds.

4. The royalties shall be calculated and paid according to royalty coefficients in the royalty bracket with the value of a royalty coefficient unit.

Royalty = The royalty coefficient x the value of a royalty coefficient unit.

Article 25.- Other provisions

1. The authors of the lyrics of musical pieces or the words of picture stories shall enjoy 20-50% of the royalties for those works.

2. Authors of the translations from foreign languages or ethnic minority languages into Vietnamese or vice versa shall enjoy 40-65% of the royalties for works of the corresponding genre in Vietnamese. The royalty levels shall be decided by the editors-in-chief.

3. Authors of works for children or ethnic minority people shall additionally enjoy an incentive royalty amount equal to 10-20% of the royalties for those works.

4. Vietnamese authors who directly write in foreign languages, authors of Kinh ethnic majority who directly write in ethnic minority languages, people of one ethnic minority group who directly write in the language of another ethnic minority group shall additionally enjoy an incentive royalty amount equal to 30-50% of the royalties for those works.

5. Authors of works created under difficult and/or dangerous conditions shall additionally enjoy incentive royalties which must not exceed the royalty of those works.

6. The percentages of royalty enjoyed by interviewers and interviewees shall be agreed upon between the two parties.

Article 26.- Royalty funds

1. The press agencies shall make deductions for setting up the royalty funds by two methods:

a) For press agencies operating mainly with the State budget provided by their managing bodies, the annual royalty funds shall be calculated as follows: The quantity of the average royalty coefficient in a paper, magazine issue multiplied by the value of a royalty coefficient unit, multiplied by the number of paper, magazine issues in the year; plus the incentive royalty and remuneration.

b) For press agencies which finance by themselves the funding and earn profits from their press activities, the royalty funds shall be calculated from the turnovers of their press activities according to the following percentages:

- 1- 5% of the turnover for press agencies with circulation of over 100,000 copies.

- 5-10% of the turnover for press agencies with circulation of 100,000 copies or less.

2. The royalty funds shall also be added from other revenue sources of the press agencies, if so agreed upon by their managing bodies.

Chapter VI

ROYALTIES FOR RADIO, TELEVISION WORKS (RADIO, TELEVISION PRESS)

Article 27.- Subjects entitled to enjoy royalties

1. Authors or owners whose works are used by radio and/or television agencies.

2. Scriptwriters, directors, musicians (excluding musics from documentary tapes), for radio.

3. Scriptwriters, directors, cameramen, film producers, musicians (excluding musics from documentary tapes), painters, for television.

4. Authors who belong to the work-using agencies (on the payroll or under long-term contracts) shall enjoy royalties as provided for in Clause 3, Article 6 of this Decree.

5. In addition to the subjects prescribed in Clauses 1, 2, 3 and 4 of this Article, broadcasters, theatrical or cinematographic actors and actresses and entertainers of other forms of artistic performance, program directors, music directors, lighting designers, art assistant, sound directors, high-technique cameramen shall, depending on the extent of their contributions, be paid remuneration by radio and/or television agencies.

Those who perform the above jobs and belong to the radio or television agencies (on the payroll or under long-term contracts) shall enjoy remuneration as provided for in Clause 4, Article 6 of this Decree.

The remuneration money shall be calculated into the cost or total expenses for compilation of the works.

Article 28.- Royalties for radio and television works

1. The authors or owners prescribed in Clause 1, Article 27 of this Decree shall enjoy royalties as provided for in Chapter V of this Decree.

2. Royalties shall be paid to authors or owners prescribed in Clause 2, Article 27 of this Decree as follows:

a) For genres 1, 4, 5 and 7 in the press royalty bracket, the authors or owners shall enjoy royalties equal to 20-30% of the royalties of the corresponding genres.

b) For genre 6 in the press royalty bracket, the authors or owners shall enjoy royalties equal to 50-150% of the corresponding genre.

c) For theatrical works and other forms of artistic performance, the authors or owners shall enjoy royalties equal to 50-70% of the royalty levels prescribed in Chapter III of this Decree.

3. Royalties shall be paid to authors or owners prescribed in Clause 3, Article 27 of this Decree as follows:

a) For genres 1, 4, 5 and 7 in the press royalty bracket, the authors or owners shall enjoy royalties equal to 50-100% of the royalties of the corresponding genres.

b) For genre 6 in the press royalty bracket, the authors or owners shall enjoy royalties equal to 100- 200% of the royalties of the corresponding genre.

c) For theatrical works and other forms of artistic performance, cinematographic works, the authors or owners shall enjoy royalties equal to the corresponding royalties prescribed in Chapter III or Chapter IV of this Decree. The general directors (directors) of the television stations are entitled to pay royalties to the work authors or owners at higher levels, but the total royalties and remuneration shall not exceed 20%, for feature film, television theatre, and not exceed 60% for documentary and science films, of the total production costs of the works (excluding the television equipment costs).

Article 29.- Other provisions

1. Works broadcast many times shall be paid with royalties agreed upon in the contracts.

2. For works which have been used in other press agencies or in form of publications, if re-used for radio and/or television not for commercial purposes, the work authors or owners shall not enjoy royalties prescribed in Clause 1, Article 28 of this Decree.

Article 30.- Royalty funds

1. For radio and television stations operating mainly with the State budget allocated by their managing agencies, the royalty funds shall be calculated with the average amount of royalty for a radio or television program multiplied by the total time volume of the radio or television programs in the year; plus the incentive royalties and remuneration.

2. For radio or television stations which can balance their funding or are given by the State revenue package and expenditure package and have their revenues in excess of their expenditures, the royalty funds shall be added with a deduction of 3-15% of the total revenue, including the portion allocated by the State budget and other revenue amounts (revenues from advertisement, from program-selling services and other radio or television services).

3. The royalty funds shall be added also with other revenue sources of the radio or television stations, if so agreed upon by their managing bodies.

Chapter VII

ROYALTIES FOR PLASTIC ART (FINE ART), APPLIED FINE ART AND PHOTOGRAPHIC WORKS

Article 31.- Subjects entitled to enjoy royalties

The authors or owners of plastic art (fine art), applied fine art or photographic works which are used.

Article 32.- Royalties for plastic art (fine art), applied fine art or photographic works

1. The royalty levels for plastic art (fine art), applied fine art and photographic works, regardless of the materials, sizes, scales of expression of the works, shall be agreed upon between the work users and the authors or owners through work-using contracts.

2. The Ministry of Culture and Information is assigned to assume the prime responsibility and coordinate with the Finance Ministry in prescribing and guiding the payment of royalties for the use of works with the State budget.

Article 33.- Remuneration for plastic art (fine art), applied fine art, photographic works used for display, exhibitions

1. For plastic art (fine art), applied fine art and photographic works which are used for displays or exhibitions organized by State bodies, the organizing committees shall pay remuneration to the authors or owners thereof according to the following regulations:

a) For international and national exhibitions: Each work displayed at an exhibition shall be paid with an amount at least equal to 100% of the minimum wage level.

b) For regional and local exhibitions: Each work displayed at an exhibition shall be paid with an amount at least equal to 50% of the minimum wage level.

2. For plastic art (fine art), applied fine art and/or photographic works used for displays or exhibitions organized by political organizations, socio-political organizations, social organizations, socio-professional organizations or at displays or exhibitions for commercial purposes, campaign, charity, festival, exchange�, the organizing committees shall reach agreement with authors or owners on the remuneration levels.

Chapter VIII

WORK-USING CONTRACTS

Article 34.- The royalty regime shall be effected through work-using contracts according to the provisions in Chapter III of the Government�s Decree No.76/CP of November 29, 1996 and guiding documents related to the works-using contracts.

Chapter IX

STATE MANAGEMENT OVER ROYALTY REGIME

Article 35.- The State management over the regime of royalties within the scope of State management over copyright shall comply with the provisions in Chapter VI of the Government�s Decree No.76/CP of November 29, 1996.

Chapter X

IMPLEMENTATION PROVISIONS

Article 36.- Implementation effect

This Decree takes implementation effect 15 days after its signing.

Decree No. 59/HDBT of June 5, 1989 of the Council of Ministers on the regime of royalties for socio-political works, cultural and education works, literary and art works, science and technology works and the documents guiding the implementation thereof shall become invalid as from the date this Decree takes effect.

The previous provisions contrary to the provisions of this Decree are thereby all annulled.

Article 37.- Responsibility for implementation guidance

The Ministry of Culture and Information shall guide the implementation of this Decree.

Article 38.- Responsibility for implementation of this Decree

The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government, the presidents of the People�s Committees of the provinces and centrally-run cities, the authors and owners of works and the work users shall have to implement this Decree.

On behalf of the Government

Prime Minister
PHAN VAN KHAI